Proforma Invoice Hide US Currency Field For Free

We know that the standard and electronic forms fulfill the same purpose and look similar. However, a physical commercial invoice will have to be filled out by hand or printed out at the very least, whereas electronic commercial invoices are both filled out and submitted to the carrier online.

Commercial invoices reflect the actual sale and demand payment for the goods or services, whereas pro forma invoices serve as estimates or bids and give potential customers a general idea of projected prices.

A proforma invoice is a preliminary bill or estimated invoice which is used to request payment from the committed buyer for goods or services before they are supplied. A proforma invoice includes a description of the goods, the total payable amount and other details about the transaction.

A pro forma invoice is a quote in an invoice format that may be required by the buyer to apply for an import license, contract for pre-shipment inspection, open a letter of credit or arrange for transfer of hard currency.

A pro forma invoice is drawn up if the goods have no commercial value. The commercial invoice provides information about the consignor and consignee for the goods and above all contains a complete description of all contents and details of their value. An original and five copies have to accompany the parcel.

Pro forma invoice is not an actual invoice and therefore is not a legal document. GST act does not contain any term such as pro forma invoice. It is not required to be reported under any GST returns, either by buyer or seller. And seller is not required to pay GST on pro forma invoices issued.

The main difference between a Purchase Order and a Commercial Invoice is that a Purchase Order is issued by the buyer, whilst a Commercial Invoice is prepared by the seller. Purchase Orders provide an offer of a contract of sale, whereas Commercial Invoices are a confirmation of sale.